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To: May Tran who wrote (9127)	1/30/1999 7:28:00 PM
From: CigarHolder	Respond to of 40688

(puff, puff) Just a quick note re shorts.. I am on another board on SI with AGCR, a small Y2K firm that has some interests in other areas. Anyway, we were talking about MM's and how they want to keep the stcok down if they are shorting it. The following is a good piece regarding the actions of MM's shorting stocks and why...enjoy. If you want to give thanks, give the credit to Rodney-sincere and knowledgable. To: jbIII (401 ) From: RODNEY R. BORDELON Saturday, Jan 30 1999 9:40AM ET Reply # of 408 jb111, Yes, maybe you did pay tooo much for the car, but getting a stock price up, and buying a car are two different animals. If you put an order out at a limit price above the ask, the MM's can fill you at that price or less. What happened on Friday was that the MM's filled at the lower price, which is correct. BUT, why doesn't the MM's fill a few at the right lower price, then move up the bid/ask to match the orders that are being sent to the market? Because the agenda of the MM's or person shorting the stock, is to get the bid/ask down. If they allow the bid to rise they will lose money. So, the more UP ^ volume on the stock, the more pressure you put on the shorts to cover. If they see demand for the stock continue at higher levels, they will cover. But, if they don't have anyone feeding them stock to buy (HENCE COVER THERE SHORT), they must raise the bid/ask to get someone willing to sell there stock to them. The more they raise the bid/ask the harder it is to buy stock, because then they create a buying vacuum effect on the stock, because other investors will see this stock starting to move, and will buy stock on the way up. This puts an upward momentum on the stock, and when the short tries to cover it continues the upward momentum. WOW, did you get that. That was finance 101, at no charge. Please don't sell into this market, because you will be able to get a BETTER PRICE WHEN NEWS COMES OUT AND THIS effect happens.